Silver Tiger Announces PEA with NPV of US$287M FOR the Open Pit Portion of El Tigre Silver-GOLD Project
NEWS RELEASE
SILVER TIGER ANNOUNCES PEA WITH NPV OF US$287M FOR THE OPEN
PIT PORTION OF EL TIGRE SILVER-GOLD PROJECT
HALIFAX, NOV A SCOTIA – November 1, 2023 – Silver Tiger Metals Inc. (TSXV:SLVR and OTCQX:SLVTF)
("Silver Tiger" or the “Corporation”) is pleased to announce a Preliminary Economic Assessment (“PEA”) for its
100% owned, silver-gold El Tigre Project (the "Project" or "El Tigre") located in Sonora, Mexico. The PEA is centreed
on the conventional open pit mining economics of the Stockwork Mineralization Zone defined in the updated MRE
released September 12, 2023 (Figure 1).
Highlights of the PEA, with a base case silver price of $23.75/oz and gold price of $1,850/oz are as follows (all figures
in US dollars unless otherwise stated):
• After-Tax net present value (“NPV”) (using a discount rate of 5%) of US$287 Million with an After-Tax IRR
of 55.8% and Payback Period of 1.7 years (Base Case);
• 13-year mine life recovering a total of 60 Million payable silver equivalent ounces (“AgEq”) or 776,000 gold
equivalent ounces (“AuEq”), consisting of 16 Million silver ounces and 571,000 gold ounces;
• Total project undiscounted after tax cash flow of US$445 Million;
• Initial capital costs of $59 Million, including $7.7 Million in contingency costs, over an expected 12-month
build, expansion capital of $33 Million and sustaining capital costs of $ 31 Million over the life of mine
(“LOM”);
• Average LOM operating cash costs of $803/oz AuEq, and all in sustaining costs (“AISC”) of $843/oz AuEq
or Average LOM operating cash costs of $10/oz AgEq, and all in sustaining costs (“AISC”) of $11/oz AgEq;
and
• Average annual production of approximately 4.6 Million AgEq oz or 59,000 AuEq oz.
Glenn Jessome, President & CEO stated “We are very pleased with the work completed by our consultants and our
technical team on the PEA for the open pit at El Tigre. The open pit delivers robust economics with an NPV of US$287
million and substantial after tax cash flows of US$445 million.” Mr. Jessome continued “This is a pivotal point for
our Company as we now have a clear path forward to quickly completing a PFS and making a construction decision
for the open pit. The open pit has good grade, low strip, wide benches and exceptional metallurgy. With such positive
parameters and with our new VP of Operations Francisco Albelais, a career expert in the construction of large heap
leach mines in Mexico, we are confident we will be able to advance the open pit portion of the project very quickly.”
Mr. Jessome concluded “The open pit is only one component of El Tigre as we have also recently delivered over 90-
million silver equivalent ounces in the underground in the Mineral Resource Estimate and disclosed an Exploration
Target establishing 7 to 9 million tonnes at 225 to 265 g/t AgEq for 50 to 75 million silver equivalent ounces. The
Company will also continue to work on this substantial underground Mineral Resource and advance that towards a
PEA.”
Preliminary Economic Assessment Summary
The PEA was prepared by independent consultants Micon International Limited (“Micon”), with metallurgical test
work completed by SGS Canada Inc.’s Lakefield office (“SGS”) and process plant design and costing by D.E.N.M.
Engineering Ltd., and environmental and permitting led by CIMA Mexico. Following are tables and figures showing
key assumptions, results, and sensitivities.
Table 2: El Tigre PEA Key Economic Assumptions and Results
Assumption / Result Unit Value Assumption / Result Unit Value
Total OP Plant Feed Mined kt 57,038 Net Revenue US$M 1,422
Operating Strip Ratio Ratio 2.0 Initial Capital Costs US$M 59
Silver Grade1 g/t 14.27 Expansion Capital Costs US$M 33
Gold Grade1 g/t 0.39 Sustaining Capital Costs US$M 31
AuEq Grade1 g/t 0.57 Mining Costs – Plant $/t Feed 5.81
Silver Recovery2 % 61 Mining Costs – Material $/t Material 1.91
Gold Recovery2 % 80 Processing Costs $/t Feed 4.46
Silver Price US$/oz 23.75 G&A Costs $/t Feed 0.61
Gold Price US$/oz 1,850 Operating Cash Cost US$/oz AuEq 803
Payable Silver Metal Moz 15.9 All in Sustaining Cost US$/oz AuEq 843
Payable Gold Metal koz 571
After-Tax NPV (5%
discount) US$M 287
Payable AuEq koz 776 Pre-Tax NPV (5% discount) US$M 420
Mine Life Yrs 13 After-Tax IRR % 55.8
Average mining rate t/day 36,000 Pre-Tax IRR % 79.4
After-Tax Payback Period Yrs 1.7
1. Grades shown are LOM average process plant feed grades include only OP sources. Mining losses of 2.5% and external dilution of 2.5% with low grade waste for OP material was incorporated in the
mining schedule.
2. Column testing indicated both higher and gold and silver recovery (83% and 64%) at a 3/8 -in crush size. In the process design and financial model, these have been discounted by 3% for leaching in
the field versus optimum conditions in the laboratory.
Figure 1: El Tigre Mineral Resource Block Model 3D Visualization, showing pit constrained Resources.
Figure 2: El Tigre Cash Flow Profile by Year
Figure 2 above highlights the post -tax cash flows of US$445 Million associated with the E l Tigre Project. The
economics of the project have been evaluated based on the base case scenario $23.75/oz silver price and gold price
of $1,850/oz. As illustrated in the following sensitivity tables, the project remains robust even at lower commodity
prices or with higher costs.
Table 2 – El Tigre PEA Gold and Silver Price Sensitivities
Sensitivity
Base
Case
Silver Price (US$/oz) 17 19 21 23.75 26 30 33
Gold Price (US$/oz) 1,324 1,480 1,636 1,850 2,025 2,337 2,571
After-Tax NPV (5%) (US$M) 108 161 214 287 347 453 532
After-Tax IRR (%) 28.3 37.2 45.3 55.8 64.1 78.5 88.9
After-Tax Payback (years) 4.1 2.6 2.0 1.7 1.5 1.3 1.1
Table 3 – El Tigre PEA Operating Cost and Capital Cost Sensitivities
Sensitivity -20% -10%
Base
Case 10% 20%
Operating Costs – NPV (US$M) 345 316 287 258 229
Operating Costs – IRR (%) 64.4 60.1 55.8 51.5 47.2
Capital Costs – NPV (US$M) 301 293 287 280 273
Capital Costs – IRR (%) 68.0 61.3 55.8 51.2 47.3
Capital and Operating Costs
The El Tigre Project has been envisioned as an open pit mining operation starting at a processing rate of 7,500 tonnes
per day for years 1-3 and then ramping up to 15,000 tonnes per day by year 5 after 1 year construction for ramp up.
The process plant is comprised of conventional three (3) stage crushing to an optimum -3/8-in crush size. The crushed
material will be conveyed and loaded on the lined pad areas. A series of pumping and piping will allow irrigation of
the stacked heap material and subsequent production of pregnant solution to flow to the respective impoundment
$(100)
$-
$100
$200
$300
$400
$500
0 1 2 3 4 5 6 7 8 9 10 11 12 13
El Tigre Project Cash Flow Profile by Year
Post-Tax CF Initial & Expansion Capital Cumulative Post-Tax
Cash Flow (US$M)
pond. The pregnant solution will be pumped to the recovery facility consisting of the Merrill – Crowe process (zinc
precipitation) and refinery to produce the gold and silver dore for marketing. The process barren solution will be
recycled (with NaCN addition) and pumped back to the heap for further leaching.
Water supply to the process plant is provided by nearby surface wells and a new high voltage grid power will be
installed by the local utility to supply process and infrastructure power requirements. Expansion capital includes the
cost to increase the process plant capacity from 7,500 tonnes per day to 15,000 tonnes per day as noted.
Table 4 – LOM Capital Cost Estimate
Type Initial
(US$k)
Expansion
(US$k)1
Sustaining
(US$k)
Total
(US$k)
Plant direct costs 31,921 25,800 57,721
Mining direct costs 5,340 3,250 30,924 39,514
Pre-stripping 2,347 2,347
Infrastructure 9,470 9,470
Project indirect costs 2,200 2,200
Total 51,278 29,050 30,924 111,252
Contingency (15%) 7,692 4,358 12,049
Total – Initial Capital 58,969 33,408 30,924 123,301
1. Expansion capital is not included in AISC calculations
Mining
Open pit mining will be contracted and carried out by drill and blast followed by conventional loading and truck
haulage to the waste rock storage facilities and the process plant.
Metallurgy
A preliminary metallurgical test program was carried out by SGS Lakefield of Ontario, Canada on open pit samples.
Details of the testing were outlined in the previous Sliver Tiger News Release dated August 24, 2023 . The program
included crushing, coarse bottle rolls, and composite column testing at both 3/8 -in and 1/2 -in crush size. The leach
samples comprised of drill core sample representing the Stockwork Mineralization Zone of the Mineral Resource .
This preliminary test program estimated average gold and silver respective metallurgical recoveries of 83.1 % Au and
64.3 % Ag at the 3 -/8-in crush. Percolation testing also indicated no requirement for agglomeration of the crushed
material is required prior to loading.
Underground Mineral Resource
As previously released, the Company will also continue to work on this substantial underground Mineral Resource
and advance that towards PEA. Out-of-Pit Mineral Resources at El Tigre of 21 Moz AgEq grading 27 9 g/t AgEq
contained in 2.3 Mt and 70 Moz AgEq grading 2 35 g/t AgEq contained in 9.2 Mt (Table 5). For higher grade
sensitivity cases refer to updated MRE release dated September 12, 2023.
Table 5 – Mineral Resource Estimate released September 2023
1. Mineral Resources which are not Mineral Reserves, do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal,
title, taxation, socio-political, marketing, or other relevant issues.
2. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably
expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
3. The Mineral Resources in this news release were estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and
Reserves, Definitions and Guidelines (2014) prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council and CIM Best Practices (2019).
4. Historically mined areas were depleted from the Mineral Resource model.
5. Approximately 74.7% of the Indicated and 22.3% of the Inferred contained AgEq ounces are pit constrained, with the remainder out-of-pit. See tables 2 and 3 for details of the split between pit
constrained and out-of-pit deposits.
6. The pit constrained AuEq cut-off grade of 0.14 g/t was derived from US$1,800/oz Au price, US$24/oz Ag price, 80% process recovery for Ag and Au, US$5.30/tonne process cost and
US$1.00/tonne G&A cost. The constraining pit optimization parameters were $1.86/t mineralized mining cost, $1.86/t waste mining cost and 50-degree pit slopes.
7. The out-of-pit AuEq cut-off grade of 1.5 g/t AuEq was derived from US$1,800/oz Au price, US$24/oz Ag price, $4.00$/lb Cu, $0.95 $/lb Pb, $1.40 $/lb Zn, 85% process recovery for all metals,
$50/t mining cost, US$20/tonne process and US$4 G&A cost. The out-of-pit Mineral Resource grade blocks were quantified above the 1.5 g/t AuEq cut-off, below the constraining pit shell within
the constraining mineralized wireframes and exhibited sufficient continuity to be considered for cut and fill and long hole mining
8. The tailings AuEq cut-off grade of 0.30 g/t was derived from US$1,800/oz Au price, US$24/oz Ag price, 85% process recovery for Ag and Au, US$14/t process cost and US$1.00/t G&A cost.
9. No Mineral Resources are classified as Measured.
10. AgEq and AuEq calculated at an Ag/Au ratio of 75:1.
11. Totals may not agree due to rounding
Exploration Potential
Exploration potential at the El Tigre Project is substantial with prospective areas for exploration both down dip and
along strike with the disclosed target establishing 7 to 9 Million tonnes at 225 to 265 g/t AgEq for 50 to 75 Moz AgEq.
Figure 3—Exploration Potential released September 2023
Surface Rights Agreement
The Company owns royalty-free, 100% of the 6,238 hectares land -package encompassing the footprint of proposed
mining operation with no Ejido presence . In addition, the company controls 28,414 hectares of Concessions to
conduct exploration along a 25 km strike length of the Sierra Madres.
Cut-off Tonnes Au Au Ag Ag AuEq AuEq AgEq AgEq Cu Cu Pb Pb Zn Zn
AuEq (g/t) (k) (g/t) (k oz) (g/t) (k oz) (g/t) (k oz) (g/t) (k oz) (%) (Mlb) (%) (Mlb) (%) (Mlb)
Indicated 0.14 43,002 0.39 535.3 15 20,049 0.59 818.4 44 61,381 0.00 1.8 0.01 7.0 0.02 14.3
Inferred 0.14 11,524 0.47 175.9 17 6,396 0.72 267.3 54 20,045 0.00 0.8 0.01 3.7 0.02 4.3
Indicated 1.5 2,323 0.38 28.7 191 14,231 3.72 277.8 279 20,838 0.15 7.6 0.55 28.0 0.97 49.8
Inferred 1.5 9,229 0.66 196.6 155 45,885 3.14 930.7 235 69,801 0.09 17.3 0.27 55.9 0.49 99.0
Indicated 0.14+1.5 45,325 0.39 564.0 24 34,279 0.75 1096.3 56 82,219 0.01 9.4 0.04 35.0 0.06 64.1
Inferred 0.14+1.5 20,753 0.56 372.6 78 52,282 1.80 1198.0 135 89,847 0.04 18.1 0.13 59.6 0.23 103.4
Indicated 0.3 103 0.90 3.0 177 588 3.41 11.3 256 847 0.02 0.1 0.22 0.5 0.10 0.2
Inferred 0.3 18 0.46 0.3 146 83 2.52 1.4 189 108 0.02 0.0 0.17 0.1 0.09 0.0
Indicated 0.3 939 0.27 8.0 78 2,345 1.30 39.3 98 2,948
Inferred 0.3 101 0.27 0.9 79 254 1.31 4.3 98 323
Indicated 0.14+1.5+0.3 46,367 0.39 575.0 25 37,212 0.77 1146.9 58 86,014 0.01 9.4 0.03 35.5 0.06 64.3
Inferred 0.14+1.5+0.3 20,871 0.56 373.7 78 52,619 1.79 1203.7 135 90,277 0.04 18.1 0.13 59.7 0.22 103.4
Vein Total
Low Grade Stockpiles
Tailings
Total
(Vein+Stockpile+Tailing)
El Tigre Project - 2023 Mineral Resource Estimate (1-11)
Area Vein Class
Pit Constrained
Out-of-pit
Qualified Persons
This PEA was based on information and data supplied by Silver Tiger, and was undertaken by William J. Lewis, B.Sc.,
P.Geo., Kerrine Azougarh, B.Sc., P.Eng . and Christopher Jacobs, CEng, MIMMM, MBA of Micon International
Limited. Of Toronto, Ontario, and David J. Salari, P. Eng. of D.E.N.M. Engineering Ltd are the Qualified Persons as
defined under National Instrument 43 -101. All Qualified Persons have reviewed and approved the scientific and
technical information in this press release.
A Technical Report is being prepared on the Preliminary Economic Assessment in accordance with National
Instrument 43-101 (“NI-43-101”), and will be available on the Company’s website and SEDAR within 45 days of the
date of this news release. The effective date of this Preliminary Economic Assessment is November 1, 2023.
VRIFY Slide Deck and 3D Presentation – Silver Tiger’s El Tigre Project
VRIFY is a platform being used by companies to communicate with investors using 360° virtual tours of remote
mining assets, 3D models and interactive presentations. VRIFY can be accessed by website and with the VRIFY iOS
and Android apps.
Access the Silver Tiger Metals Inc. Company Profile on VRIFY at: https://vrify.com
The VRIFY Slide Deck and 3D Presentation for Silver Tiger Metals Inc. can be viewed at:
https://vrify.com/explore/decks/492 and on the Corporation’s website at: www.silvertigermetals.com.
About Silver Tiger and the El Tigre Historic Mine District
Silver Tiger Metals Inc. is a Canadian company whose management has more than 25 years’ experience discovering,
financing and building large epithermal silver projects in Mexico. Silver Tiger’s 100% owned 28,414 hectare Historic
El Tigre Mining District is located in Sonora, Mexico. Principled environmental, social and governance practices are
core priorities at Silver Tiger.
The El Tigre historic mine district is located in Sonora, Mexico and lies at the northern end of the Sierra Madre silver
and gold belt which hosts many epithermal silver and gold deposits, including Dolores, Santa Elena and Las Chispas
at the northern end. In 1896, gold was first discovered on the property in the Gold Hill area and mining started with
the Brown Shaft in 1903. The focus soon changed to mining high -grade silver veins in the area with production
coming from 3 parallel veins the El Tigre Vein, the Seitz Kelley Vein and the Sooy Vein. Underground mining on the
middle El Tigre Vein extended 1,450 metres along strike and was mined on 14 levels to a depth of approximately 450
metres. The Seitz Kelley V ein was mined along strike for 1 kilometre to a depth of approximately 200 meters. The
Sooy Vein was only mined along strike for 250 met res to a depth of approximately 150 met res. Mining abruptly
stopped on all 3 of these veins when the price of silver collapsed to less than 20¢ per ounce with the onset of the Great
Depression. By the time the mine closed in 1930, it is reported to have produced a total of 353,000 ounces of gold
and 67.4 Million ounces of silver from 1.87 Million tons (Craig, 2012). The average grade mined during this period
was over 2 kilograms silver equivalent per ton.
For further information, please contact:
Glenn Jessome
President and CEO
902 492 0298
CAUTIONARY STATEMENT:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This News Release includes certain “forward-looking statements”. All statements other than statements of historical fact
included in this release, including, without limitation, statements regarding potential mineralization, Mineral Resources and
Reserves, the ability to convert Inferred Mineral Resources to Indicated Mineral Resources, the ability to complete future
drilling programs and infill sampling, the ability to extend Mineral Resource blocks, the similarity of mineralization at El Tigre
to Delores, Santa Elena and Chispas, exploration results, and future plans and objectives of Silver Tiger, are forward-looking
statements that involve various risks and uncertainties. Forward-looking statements are frequently characterized by words such
as “may”, “is expected to”, “anticipates”, “estimates”, “intends”, “plans”, “projection”, “could”, “vision”, “goals”,
“objective” and “outlook” and other similar words. Although Silver Tiger believes the expectations expressed in such forward-
looking statements are based on reasonable assumptions, there can be no assurance that such statements will prove to be
accurate and actual results and future events could differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from Silver Tiger’ s expectations include risks and uncertainties
related to exploration, development, operations, commodity prices and global financial volatility, risk and uncertainties of
operating in a foreign jurisdiction as well as additional risks described from time to time in the filings made by Silver Tiger with
securities regulators.